The White House Economic Advisor reportedly said the Trump administration could pick up stakes in companies similar to the Intel deal detailed last Friday.
White House Economic Advisor Kevin Hassett on Monday reportedly compared the Trump administration’s decision to pick up a 10% stake in Intel Corp. (INTC) to making a down payment on a sovereign wealth fund.
In an interview with CNBC, Hassett said the Trump administration did not really “take” a stake in Intel, but that President Donald Trump and Commerce Secretary Howard Lutnick struck a deal with the chipmaker to make it easier for the company to get the CHIPS Act funding that was announced earlier by the Biden administration, in exchange for a share in its equity.
Intel’s shares were up more than 2% in Monday’s pre-market trade. Retail sentiment on Stocktwits around the company was in the ‘extremely bullish’ territory.
Hassett also said that the Trump administration could pick up stakes in companies similar to the Intel deal detailed last Friday.
“The President has made it clear all the way back to the campaign, he thinks that in the end, it would be great if the U.S. could start to build up a sovereign wealth fund. So I’m sure that at some point there’ll be more transactions, if not in this industry then other industries,” Hassett added.
Hassett defended the Trump administration’s decision to pick up a stake in Intel, saying the government’s share does not come with voting powers, so there is no concern of government interference in Intel’s business affairs. He also said this might be an unusual decision, but it is not unheard of, citing the example of Fannie Mae and Freddie Mac, in which the federal government holds stakes.
INTC stock is up 24% year-to-date and 23% in the past 12 months.
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